social media marketing - a waste of money?

Dirk SingerTwitter - @dirktherabbit

Rabbit

that really depends what your aim isThose tweets almost certainly won’t directly make a sale. Social media is not a direct response sales tool

This is unlikely to happen

INSTEAD, SOCIAL MEDIA SUPPORTS THE WHOLE SALES CYCLE

Through:1. Attention (attracting

prospects)2. Interest (educating them)3. Desire (fostering their desire)

4 . Action (actual purchase)5. Advocacy (becoming

ambassadors who spread the word)

(Source - Get Satisfaction)

CONSUMERs DO BUY BASED ON ONLINE CHATTER

According to 28,000 consumers worldwide

(Nielsen), consumer opinions posted online -

most often from strangers - are more trusted than

editorial content, let alone ads

EVEN FOR HIGH VALUE ITEMS, SOCIAL MEDIA RECOMMENDATIONS COUNT

According to a study by Sociable Labs, 62% said they’d read a comment relating to a ‘vehicle or

automotive service’, and 75% of those then clicked on the link (source)

SOCIAL MEDIA IS AN IMPORTANT RESEARCH TOOL

Approximately 51% of online shoppers

consider social sites as valuable and credible

resources for researching products

and services

Along with reading reviews, 33% of

smartphone users use their device to look for

sales and specials.(Source)

YOUR TWITTER FEED WILL BRING YOU WEB TRAFFIC

According to Compete and Twitter, being exposed to

tweets from a retailer makes you both more likely

to visit and buy (source)

YOU CAN TURN DETRACTORS INTO FANS

Simply sending a reply in response to a negative review will turn almost 1/5 detractors – 18% – into fans (source)

PEOPLE WILL SHARE....IN THE RIGHT CIRCUMSTANCES

“When the product was one for which public consumption is desirable (e.g., sportswear or a desirable fragrance) the presence of the Facebook and Twitter icons made people 25 percent more likely to purchase. But when the product was more private in nature (e.g., Spanx, Clearasil), the icons suppressed purchase intentions, also by 25 percent.”(University of Miami)

SOCIAL MEDIA WORKS BEST IN COMBINATION(source - Ogilvy)

People exposed to social media and PR increased spending by 17% People exposed

to social media and TV were twice as likely to buy as the following week

Social media + OOH resulted in 1.5x higher likelihood of increase

ARE WE MEASURING IT ALL WRONG ANYWAY?

Social media's impact on sales is undervalued by 94%, you need to look at 1st click and not at last click (Adobe)

The "rst click is the "rst step consumers will go on the sales journey - often

this is a social media recommendation. The last click is the last thing they

will do before going to buy

SO ONCE AGAIN - SOCIAL MEDIA IS NOT INSTANT MARKETING GRATIFICATION. IT IS MORE LASTING

It comes into play at every stage of the consumer

decision journey, and will result in:

50% increase in customer satisfaction,

48% increase in business leads

24% increase in revenue

(Companies that adopt social technologies -

source McKinsey)

thank you!

Rabbit, social media agency of the yearhello AT therabbitagency.com

www.therabbitagency.com

For more stats around this topic, check out this post on Lies, Damned Lies and Statistics

CREDITSImages from Creative Commons

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Content Sources

•http://blogs.wsj.com/corporate-intelligence/2012/11/26/social-media-has-a-black-friday-fail/ (WSJ Blogs)•http://blog.nielsen.com/nielsenwire/media_entertainment/consumer-trust-in-online-social-and-mobile-advertising-grows/ (Nielsen)•http://www.slideshare.net/wikimotive/study-shows-huge-social-media-impact-for-automotive-sales-and-service#btnNext (Wikimotive)•http://www.commonplaces.com/inspiring-conversation/team-posts/how-social-media-and-mobile-devices-a#ect-consumer-behavior (Common Places)•http://searchenginewatch.com/article/2227816/For-the-18th-Time-Social-Media-Marketing-Doesnt-Suck-How-Twitter-Drives-Online-Sales (Search engine watch)•http://liesdamnedliesstatistics.com/2011/03/a-simple-reply-turns-15-of-detractors-into-fans.html (Lies, Damned Lies, Statistics)•http://bus.miami.edu/news-and-media/recent-news/townsend-social-media-12.html (University of Miami Business School)•http://www.slideshare.net/OgilvyCapeTown/ogilvy-social-media-impact-on-sales-study#btnNext (Ogilvy)•http://contently.com/blog/2012/03/23/social-media-sales-infographic/ (Contently)•http://www.mckinseyquarterly.com/Demystifying_social_media_2958 (McKinsey)•http://www.bbc.co.uk/news/business-18013662 (BBC)